Money serves as a measure of value in terms of unit of account. Measurement of value Was the main difficulty of the barter system. Introduction of money has removed this difficulty. It acts as a yardstick of standard measure of value to which all other things can be compared.” Money measures the value of everything or the prices of all goods and services can be expressed in terms of money. This function of money also enables the trading firms to ascertain their costs, revenues, profits and losses.
Money acts as a yardstick of standard measure of value to which all other things can be compared. Discuss it.
Answers
Ashutosh Raina
Money serves as a measure of value in terms of unit of account. Measurement of value Was the main difficulty of the barter system. Introduction of money has removed this difficulty. It acts as a yardstick of standard measure of value to which all other things can be compared.” Money measures the value of everything or the prices of all goods and services can be expressed in terms of money. This function of money also enables the trading firms to ascertain their costs, revenues, profits and losses.